Christian Perspective Ecclesiastes 5:10 

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Christian Perspective
 Ecclesiastes 5:10
Whoever _____ _______ never has ______ enough;
whoever _____ ________ is never satisfied with his
income. This too is meaningless.
 Hebrews 13:5
Keep your lives free from the _____ ___ _______
and be content with what you have…
 I Timothy 6:10
For the ____ __ ______ is a root of all kinds of evil.
Christian Perspective
 I Corinthians 16:2 (Paul speaking)
On the first day of each week, each one of you should
____ ______ a sum of money in keeping with his
income, _______ ___ ___ , …
 Proverbs 13:11
Dishonest money dwindles away, but he who _______
_______ ________ by _______ makes it grow.
 Proverbs 13:22
A good man _______ ___ ______________ for his
children's children, …
401K, 403B, 457, SEP
Retirement Plans
 Company sponsored retirement savings plans
(supported by multiple types of mutual funds)
– 401K offered by ____________________ companies
– 403B offered by ____________________ companies
– 457
offered by _______________ _____________
– SEP available for ______________ _____________
 In many cases, these retirement savings plans are
__________ company sponsored _________ _______
401K, 403B, 457, SEP
Retirement Plans (cont’d)
 Maximum contribution is ________ % of earned
income subject to a maximum amount per year
 Tax favored (advantaged)
– Additions are made with ________________ dollars
– All interest/dividends are _______ _____________
 Most companies will match the first _______ %
of each employee’s contribution
 All balances must be ________ _______ to an IRA
when you leave a job (to avoid taxes and _______
tax penalties)
Individual Retirement Accounts
 Traditional IRA
–
–
–
–
–
(very similar to a 401K or 403B plan)
All new contributions are made with ______________ dollars
All mutual funds gains are ________ _____________________
All future withdrawals are _____________ _______________
You must begin withdrawing money at age ____________
Main use: __________________________________________
 Roth IRA
–
–
–
–
(introduced in 1997)
All new contributions are made with _________ _____ dollars
All mutual fund gains are __________ _______________
All future withdrawals are __________ _______________
after age _______________
You do not have to begin withdrawing money at age _________
Retirement Savings Strategy
 Begin investing ____ % your first day at work
– You will never ______ what you never ______
– You will not have to make tough __________ ______
 Recommended Investment Strategy
– First, invest in a ________ up to the matching pct
– Second, invest in a ________ _________ up to the
maximum amount allowed per year ($4,000 in 2005).
– Third, go back and invest in your _________ up to the
maximum amount allowed per year ($14,000 in 2005)
Retirement Savings Example
 Your first job pays _____________ per year and you get
a raise of ______________ per year thereafter
 You contribute _________ % each month (Payroll Deduction)
 Your employer matches the first _______ % contribution
 You contribute _______ % for ________ years (ages 22–67)
 Your final retirement “nest egg” will be:
401K
+
Roth IRA
=
Total
$_________ + $__________ = $___________
(
5% - pessimistic)
$_________ + $__________ = $___________
(
6% - conservative)
$_________ + $__________ = $___________
(
8% - avg last 30 yrs)
$_________ + $__________ = $___________ (10% - optimistic)
Summary
 Every person is eligible to invest in their future
 You will secure your financial future if you just
follow one simple rule…. Invest 10% beginning
day one of your career
 Don’t borrow from your 401K or Roth IRA!
 College is still the best option if you want:
– More initial career options
– Higher starting salary
– More career advancement opportunities
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